By Penny Langford
BRISBANE, Australia : In a move that further consolidates the Western supply of critical minerals, Australian mining billionaire Andrew Forrest has finalized the acquisition of a 16.8% stake in EQ Resources (ASX: EQR). The A$133 million (US$89 million) transaction, executed through Forrest’s private investment arm, marks one of the most significant mining M&A deals of 2026 within the tungsten sector.
The investment underscores a growing urgency among industrial heavyweights to secure non-Chinese sources of tungsten: a metal essential for everything from defense munitions and aerospace components to semiconductors and heavy machinery. As global markets grapple with a structural deficit and restrictive export policies from major producers, the deal positions Forrest at the center of the "critical minerals race" that has come to define the 2026 commodities landscape.
Securing the Western Supply Chain
The transaction involved the purchase of approximately 862 million shares and 35.6 million options from Oaktree Capital Management. While the deal is categorized as a shareholder-level transaction, it grants Forrest’s Wonongarra Pty Ltd the right to nominate a director to the EQ Resources board, signaling a long-term strategic partnership rather than a passive investment.
EQ Resources, which operates the Mt Carbine mine in North Queensland and the Barruecopardo mine in Spain, is currently the largest Western producer of tungsten. The Mt Carbine operation, in particular, has seen a rapid expansion over the last 24 months, benefiting from high-grade ore bodies and an optimized processing circuit.
The capital injection comes at a time when the tungsten market is entering what analysts describe as a "high-price era." With the global supply-demand gap projected to exceed 17% through 2028, securing primary production has become a priority for diversified mining houses.
Tungsten: The Forgotten Critical Mineral
While lithium and rare earths often dominate the headlines, tungsten has quietly become a flashpoint for geopolitical tension. In late 2025, new export controls were implemented by major Asian producers, leading to a sharp spike in Ammonium Paratungstate (APT) prices, which have now stabilized above $460 per metric tonne unit (MTU).
Forrest’s move into tungsten follows his established pattern of investing in the "energy nexus": the intersection of mining, energy transition, and national security. "This isn't just about industrial tools," noted one mining analyst familiar with the deal. "It's about the entire defense and aerospace supply chain. Without tungsten, you don't have hardened drill bits for oil and gas, you don't have turbine blades, and you certainly don't have modern defense capabilities."
The acquisition is part of a broader trend in mining M&A deals 2026, where the focus has shifted from volume-chasing in base metals to strategic "surgical strikes" in niche, high-value critical minerals.
The Mt Carbine Expansion and Spanish Synergy
EQ Resources has been aggressive in its growth strategy. The Mt Carbine project is currently ramping up its Phase II expansion, which aims to double the annual output of tungsten concentrate. The project's economics are supported by a unique ore-sorting technology that reduces waste and energy consumption: a feature that likely appealed to Forrest’s well-known focus on green mining technology.
In Spain, the Barruecopardo mine provides a strategic foothold in Europe, a region that has recently implemented its own Emergency Response framework for rare earths and critical minerals. By controlling significant stakes in both Australian and European production, EQ Resources offers a diversified, low-risk alternative to the historically dominant supply chains.
Market Impact and Financial Outlook
Following the announcement of the stake acquisition, EQ Resources’ shares on the Australian Securities Exchange surged by 34%, reflecting investor confidence in the backing of a tier-one mining magnate. The A$133 million valuation represents a significant premium over the 2024 lows, suggesting that the "floor" for critical mineral assets has moved substantially higher in 2026.
According to latest market intelligence, the tungsten market value is expected to reach $7.6 billion by the end of this year. The persistent deficit is driven by:
- Depleted Inventories: Global stockpiles reached a 10-year low in Q1 2026.
- Technological Shift: Increased demand from the semiconductor industry for high-purity tungsten.
- Defense Spending: A 15% year-on-year increase in global defense budgets has directly impacted tungsten demand.
Investors are increasingly looking at companies like EQ Resources as "pure plays" that offer protection against the volatility seen in more crowded markets like lithium. You can read more about how lithium price forecasts for 2026 are impacting broader sentiment in our recent analysis.
Operational Risks and Geopolitical Headwinds
Despite the bullish outlook, the deal is not without its risks. The primary challenge for EQ Resources remains the operational scaling of its Spanish assets, which have faced stricter environmental regulations than their Australian counterparts. Furthermore, the global tungsten price is highly sensitive to Chinese trade policy; any sudden easing of export restrictions could create a temporary oversupply, though most analysts believe the structural deficit is too deep for a quick fix.
There is also the matter of infrastructure. As production increases at Mt Carbine, the demand for power and water in regional Queensland will test the limits of current provincial support. However, with Forrest’s involvement, many expect a faster transition toward autonomous and renewable-powered operations, mitigating some of these logistical hurdles.
A New Chapter for EQ Resources
For EQ Resources, the entry of Andrew Forrest into the register provides a "seal of approval" that will likely lower the cost of capital for future expansions. The company’s management has stated that the day-to-day operations will remain unchanged, but the strategic guidance from Forrest’s team is expected to accelerate the company’s goal of becoming a top-three global producer.
As we move further into the second half of the year, the Forrest-EQ deal will likely serve as a blueprint for other mining M&A deals 2026. The era of the generalist miner is giving way to a more specialized, supply-chain-focused approach where mineral criticality is the primary driver of valuation.
Industry Context: The Critical Mineral Shift
This transaction is the latest in a string of high-profile moves in the sector. From the discovery of massive gold deposits in China to the revival of the Lobito Corridor, the geography of mining is shifting. Andrew Forrest’s acquisition is a clear signal that the Australian Outback remains the premier destination for securing the materials that will build the future.
Social Media Snippet (LinkedIn/X):
? Mining M&A update: Andrew Forrest has secured a 16.8% stake in EQ Resources for A$133M. As the world’s largest Western tungsten producer, EQ Resources is now a central pillar in the race to secure non-Chinese supply chains. With tungsten prices hitting a "high-price era" in 2026, this deal underscores the critical importance of the Mt Carbine and Barruecopardo projects. Is tungsten the next lithium? Read our full breakdown at Skillings. #MiningNews #Tungsten #CriticalMinerals #AndrewForrest #EQResources #MiningMA
